balance transfer fees

2007-05-02 10:04:19

( Financial )



Capped or 0% introductory fee teasers may help only during the period if afterwards, the fees shoot up sky-high. Even during the period, you get jacked-up charges if you pay late even for a single payment if subjected to penalty fees.

Unpaid balance transfer fees with high minimums from one card to another may save you for a day; it may turn out to be expensive in the long run if you consider the ways this option is limited by credit card providers because balance transfer fees from one card to another is not without cost. Certain providers actually charge you with other fees and higher interest rates.

Know the extent of the introductory promo rate period and the annual percentage rate after the expiration of the promo rate and the rates application to both balance transfer fees or new purchases. Know the annual, transaction, late and the over-the-limit fees, if any.

Some providers waive only the initial balance transfer fees, which are those transfers authorized when the credit card holder accepts the cards and completes the balance transfer form and in which cases, the subsequent 0 balance transfer fees are treated as cash advances and subjected to such fees.

If your card operates on negative payment hierarchy, your payments will be assigned to the cheapest debt and lowest interest rates first and to an order of debts or charges constituting of insurance premiums, interests, charges or fees, balance transfer and promotional transaction charges and interests, retail purchases and cash transactions. Because of the payment allocation, you will be paying charges and interests on the expensive transactions last and paying balance transfer even where no interest is accrued.

There are credit card providers who give 0 balance transfer fee on invitation only. In this case, you have to spend a certain amount before you can avail of the option or to entitle you to the full period.

If you transfer large amount-balances every now and then, a capped or no balance transfer fee card is ideal for you, provided there is no negative payment hierarchy and no extra clauses.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.